The Rio Tinto Limited (ASX: RIO) share price has been struggling this week despite no news having been released by the S&P/ASX 200 Index (ASX: XJO) iron ore giant.
The stock is in the green today, posting a 0.43% gain. But that's not enough to negate the 2.5% fall it recorded over the course of Tuesday and Wednesday.
Indeed, the Rio Tinto share price is currently 1.2% lower than it closed last Friday's session.
So, what might be dragging on the materials favourite this week? Let's take a look.
Image source: Getty Images
What's weighing on the Rio Tinto share price?
The Rio Tinto share price has posted a fall for this week so far. Though, it is outperforming its sector.
The S&P/ASX 200 Materials Index (ASX: XMJ) is down 0.17% right now and 2.1% lower than it ended last week.
The iron ore giant's peers are also in the weekly red. The Fortescue Metals Group Limited (ASX: FMG) share price is trading 0.8% lower than it closed last Friday. At the same time, shares in BHP Group Ltd (ASX: BHP) have fallen 1.25% over the course of this week.
The three iron ore giants have been in focus for much of the last four days due to concerns about the iron ore price.
The commodity's value generally sees a boom in September and October, but that hasn't materialised this year, my Fool colleague Tristan reports.
Its gains are normally driven by an increase in Chinese construction. But with many of the nation's cities pushing through lockdowns and its housing market experiencing a downturn, building hasn't ramped up.
Thereby, demand for steel – for which iron ore is a critical component – isn't rising in China. In return, the iron ore price isn't surging as expected.
That's an issue for Rio Tinto shares as the company's bottom line is dependent on the commodity's price. Any rise or fall adds to or takes from its overall profits.
Thus, the latest concerns about the iron ore price's future have likely weighed on the stock and that of its peers this week.
